Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Pendleton-based Remy International Inc. announced Thursday that it plans to acquire Maval Manufacturing Inc., a steering-system maker that employs about 210 people in northeast Ohio.
The companies expect the deal to close by the end of March. Terms were not disclosed.
Maval, founded in 1987, is one of the country's largest hydraulic remanufacturers and an international leader in the production of off-road steering systems. The private company is based in Twinsburg, Ohio, about halfway between Cleveland and Akron.
Various business research websites estimate Maval's annual revenue at between $25 million and $50 million.
Remy is one of the world's leading manufacturers of starter motors and alternators for light-vehicle and commercial-vehicle applications. It has more than 6,000 employees, including about 500 in the Indianapolis area.
"We are continuing to expand our portfolio beyond our core rotating electrics products into high-quality multi-lines with growth potential," Remy President and CEO Jay Pittas said in a written statement. "Maval is a perfect fit for us: a well-managed, resourceful, profitable company with quality products that can stand on its own. We can help them grow and increase their distribution."
Maval co-founders and partners John Dougherty, Jon Statler, and Dale Lumby will stay on after the acquisition. Statler told Crain's Cleveland Business that the deal will help Maval grow its operations in Twinsburg
Maval is expected to retain its brand identities for core products, including its Unisteer and Wicked Bilt lines.
Earlier this week, Remy announced quarterly results that included a slight rise in profit on a decrease in revenue.
The company earned $11.7 million in the fourth quarter ended Dec. 31, up from $11.6 million in the fourth quarter of 2013. Revenue dropped 5 percent, to $281.4 million.
For the full year, Remy reported a 4-percent rise in revenue, to $1.18 billion. Profit fell from $15.8 million to $6.1 million.
On Wednesday, Remy said its board of directors approved a three-year share repurchase program, effective Feb. 23, under which Remy may repurchase up to $100 million of its outstanding ordinary shares.
Remy shares closed at $23.31 each Thursday, up more than 9 percent since the beginning of the year.
Please enable JavaScript to view this content.